The 5 Most Common Objections to Roth Conversions (and Why They’re Wrong)
Release Date: 05/20/2026
Why Not Put Your Entire Retirement into 5.25% Treasuries? (Have You Won the Game?)
The Power Of Zero Show
Is putting your entire retirement planning strategy into 30-year treasuries really the safe bet it seems? David McKnight reveals why this approach could expose you to two hidden risks, and explains how the stock market and annuities might hold the real key to protecting your income. In this episode, David McKnight looks at whether putting your entire retirement portfolio into 30-year treasuries is the way to go. While it may seem like a pretty compelling argument, there’s a major problem with this strategy – and it comes down to two things: taxes and inflation. The U.S....
info_outline
Dave Ramsey’s 8% Retirement Rule: What Could Possibly Go Wrong?
The Power Of Zero Show
Dave Ramsey says retirees can safely withdraw 8% a year from the stock market, but does his retirement planning math actually hold up? David McKnight breaks down why Ramsey’s approach overlooks a critical risk, and why annuities may be the missing piece to sustainably boosting your retirement income beyond the traditional 4% Rule. In this episode, David McKnight examines Dave Ramsey’s 8% withdrawal rate claim and why retirement planning may need annuities, and not just the stock market. For Ramsey, you can take 8% per year out of your stock market portfolio in retirement, despite what...
info_outline
The Three Biggest Reasons Americans Hate Annuities
The Power Of Zero Show
Most Americans hate annuities and would tell you to avoid them… But what if the version you’ve been warned about isn’t the only option for retirement planning? David McKnight breaks down a strategy that’s quietly helping retirees sleep better at night and safeguard themselves against the 3 biggest annuities-related problems. In this episode, David McKnight looks at three perfectly legitimate reasons why Americans have been reluctant to embrace annuities, as well as a solution. The first problem is liquidity. David points out that one of the biggest fears in retirement is...
info_outline
Should High Earners Contribute to a Roth 401k?
The Power Of Zero Show
Should every dollar go into a Roth 401(k) if taxes will be higher? David McKnight reveals why that instinct could actually be one of the most expensive tax decisions a high-income earner can make when it comes to retirement planning. In this episode, David McKnight addresses two frequently asked questions: “If tax rates are going to be higher in the future, should I be putting every dollar into a Roth 401(k)?” and “Should I be converting as much of my IRA to Roth as quickly as possible?”. David believes that the current tax rates are as low as we’re likely to see in your...
info_outline
The Latest Proposal to Tax Roth IRAs: Should you be worried?
The Power Of Zero Show
Should you stop doing Roth conversions as part of your retirement planning after Senator Ron Wyden’s new legislation targeting specific retirement accounts? David McKnight breaks down the key aspects of the proposal and what it actually means for the average American (and their retirement). Show Notes In this episode, David McKnight looks at whether you should stop doing Roth conversions following Senator Ron Wyden’s introduction of legislation for taxing Roth IRAs. For David, 99.9% of Americans should continue investing in Roth accounts with a high degree of confidence. One of...
info_outline
The Hidden Reason Married Couples Need Roth Conversions
The Power Of Zero Show
One spouse passes away, and suddenly the survivor is filing alone, pushed into tax brackets they never saw coming. David McKnight explains why a Roth conversion, done now through smart retirement planning, could spare your loved ones the painful surprise known as Widow’s Penalty. Show Notes In this episode, David McKnight discusses something that could cause your taxes to rise dramatically even if Congress never raises taxes by a single percentage point! That's the so-called Widow's Penalty, and it's a critical piece of retirement planning that too many people overlook. The U.S....
info_outline
What If I Retire Into A Market Crash?
The Power Of Zero Show
David McKnight addresses one of the biggest fears people have as they approach retirement: “What if I retire right into a market crash?”. Not only this represents one of the biggest challenges in retirement planning but it’s also one of the reasons why David advocates for protecting yourself from sequence of returns risk. When it comes to long-term stock market investing, it’s important to understand the difference between retirement years and accumulation years. Sequence of returns is the order in which market returns occur in your portfolio. That order, David stresses,...
info_outline
The Five Biggest Roth Conversion Traps
The Power Of Zero Show
In this episode, David McKnight walks you through the five biggest Roth conversion traps, and how to avoid them. He is a big believer in Roth conversions. Because of the apocalyptic fiscal trajectory of the U.S., taxes in the future are likely to be dramatically higher than they are today. Hence, every dollar you reposition from tax-deferred to tax-free at these historically low tax rates may be one of the smartest financial decisions you ever make. However, while many people understand Roth conversions in theory, they still get them wrong in practice – David has seen some very costly...
info_outline
High Earners: Stop Making This Roth vs. Traditional Tax Mistake!
The Power Of Zero Show
David McKnight addresses one of the most common questions he gets: “If tax rates are going to be dramatically higher in the future, shouldn’t I be putting every dollar into a Roth 401(k)?”. Moreover, people often wonder whether they should be converting as much of their IRA to Roth as quickly as possible. David is a firm believer that the current tax rates are as low as we’re likely to see in our lifetime. The U.S. has over $39 trillion in debt and it’s going to increase by two trillion per year over the next 10 years and over $200 trillion in unfunded obligations for Social...
info_outline
What REALLY Happens When Your Kids Inherit Your IRA
The Power Of Zero Show
In today’s episode, David McKnight discusses what many people don’t get about the IRS and what happens to their IRA and what their children are supposed to get at some point. Many people spend decades building up tax-affirmed retirement accounts without fully appreciating what happens when those accounts pass to the next generation. When a spouse inherits an IRA, they get the most favorable treatment under the tax code. In fact, they have options that nobody else gets - like the spousal rollover. David touches upon the so-called Stretch IRA, which he considers one of the greatest estate...
info_outlineDavid McKnight unpacks the five most common objections to Roth conversions and why they simply don’t hold up under scrutiny.
The first objection has to do with people not wanting to voluntarily pay taxes before the IRS requires them to.
While on the surface, postponing this may sound logical, it ignores a fundamental aspect: the state of the U.S. national debt.
It has just passed $39 trillion, and it’s slated to grow by $2 trillion per year for the next 10 years, and $3 trillion after that.
In other words, interest on the national debt is becoming one of the largest line items in the federal budget.
That means that by refusing to pay taxes today, you’re making an insanely risky bet that taxes in the future will be lower than they are right now.
All, while your IRA keeps growing and compounding over time.
Thus, 10 years from now, not only could tax rates be higher, but your required minimum distributions could be dramatically larger.
The second most common objection to Roth conversions revolves around people saying, “If I do Roth conversions, that additional income will force me to pay increasingly higher levels of IRMAA or cause my Social Security to be taxed.”
David points out that Roth conversions do increase your taxable income, which can trigger those additional expenses during the conversion period.
However, while it’s true that you’ll pay IRMAA and Social Security taxation in the short term, you’ll get rid of those additional expenses for the rest of your life once your conversion period is over.
Objection #3 is “There’s too much opportunity cost, I won’t have time to make up for the taxes I paid”.
David explains that, despite sounding sophisticated, this objection is based on a flawed premise.
Your IRA is a “business partnership” with the IRS – and every year they get to vote on what percentage of your profits they get to keep.
So, when you do a Roth conversion, you’re not losing money. You’re simply buying out your “silent business partner” at today’s historically low tax rates.
David highlights that, if taxes double in the future, you’ll be glad you bought them out while taxes were still on sale.
The fourth objection – “In retirement, I’ll be in a lower tax bracket” – is actually one of the most dangerous assumptions in all of retirement planning.
People assume that when they retire, their taxes automatically go down.
For many Americans, the exact opposite happens, though.
Once required minimum distributions kick in, they can force huge amounts of taxable income onto your tax returns.
David touches upon an additional issue almost nobody talks about: the so-called widow’s penalty.
The fifth objection to Roth conversions revolves around the question, “Won’t the federal government tax Roth IRAs sometime down the road?”
People don’t realize that the government loves Roth IRAs because they generate tax revenue today – unlike traditional IRAs, which delay tax revenue.
That’s why, every time Congress needs money, they tend to pass legislation that makes Roth accounts even more attractive.
Remember: Roth conversions are about taking advantage of the tax sale of a lifetime before catastrophic levels of debt force tax rates higher.
Mentioned in this episode:
David’s new book: The Secret Order of Millionaires
David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track
Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David's Tax-free Tool Kit at taxfreetoolkit.com